In the prior blog on this subject, the use of interim hotel management addressed the circumstances and typical users and types of assignments. In this part, situations are discussed where short term and temporary management can be more a liability than a solution. Several examples include: Interim Hotel Managementa) A hotel foreclosure by a Bank…
Traditional wisdom suggests that when you write a restaurant bar business plan, it should be with the assumption you will be successful. However, according to many industry statistics, the likelihood of failure is more evident among restaurants than many other businesses. For example and according to the IRS, 1 out of 2 restaurants fail in…
The first issue to consider from a night club expert viewpoint is the ratio of sales in terms of tickets or door cover charges, beverage revenues and retail if any. The next crucial areas are costs and expenses, particularly the mix of sales and entertainment. And the last, are the fixed overheads such as rent,…
If you are looking to find issues that a hotel receiver might face and other topics, check out the new index search recently unveiled for articles and related information at the Receivership News. This is a quarterly publication that is produced by the California Receivers Forum for both its members and the general public to view.…
Back in 1985, little did I know many years later that our business as a hotel asset manager, interim property manager, resort consultant, court appointed receiver, hospitality and restaurant expert witness would last through three major economic recessions including this one. Nor, did I expect to mark our 25th anniversary of Perry Group International during…
It seems like deja vu when hotel receiverships or foreclosures were thought to be the step many lenders would take when loans came due in 2009. Well, it is soon to be 2012 with many hotel loans maturing from refinancing done five years ago. However, and like “extend and pretend” that appeared to dominate the loan…
In a time of year when owners and operators update and revise their restaurant bar business plan for the upcoming Holidays and New Year, there is encouraging news. Both December party forecasts and recent operator stats on sales and profits margins show signs of improvement over last year. According to this story in the Chicago…
If you are contemplating restaurant turnaround services, the latest report from Technomic featured in Nation’s Restaurant News sheds some light on the current economic recovery. Here are some of the “highlights” of that report if you are an owner or investor of a failing restaurant or a bank faced with a troubled restaurant loan: What…
A week ago we shared two conflicting stories about the potential rising need for a hotel receiver due to foreclosures versus separate predictions that workouts will prevail instead. Added is the latter should prove true as other lenders have said. According to the latest in Bloomsburg Businessweek: “Special servicers, who negotiate with landlords on behalf of…
We routinely read and share articles from our hotel motel consultant peers that clients and colleagues find of interest. This week the talk is about the continuing rise in U.S. hotel operating performance in the first two quarters of 2011 and turning distress into success. Here are excerpts from that commentary and some of our…